Brown Manufacturing uses straight-line depreciation for financial statement reporting and is able to deduct 100% of the cost of equipment in the year the equipment is purchased for tax purposes. Four years after its purchase, one of Brown's manufacturing machines has a book value of $600,000. There were no other temporary differences and no permanent differences. Taxable income was $10 million and Brown's tax rate is 25%. Requirement: Show your answers a. Show the amount for each of the four steps: a. Step 1: Tax payable b. Step 2: Deferred tax liability: c. Step 3: Deferred tax change: d. Step 4: Tax expense plug: b. What is the deferred tax liability to be reported in the balance sheet? c. Assuming that the deferred tax liability balance was $175,000 the previous year, prepare the appropriate journal entry to record income taxes this year